Permitting Reform Emerges as Path for Power Growth
Wood Mackenzie says permitting reform is likely after Democrats captured both chambers in the midterm elections.
Updated on Nov. 4, 2026 in Utilities
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Wood Mackenzie reports that permitting reform is likely the path forward following Democratic gains in the U.S. House and Senate in the midterm elections. The firm projects wholesale power prices will rise 46% from 2026 to 2035 as electricity demand grows 3%.
Why it matters
Rising energy costs driven by conflict in the Middle East have made power affordability a central bipartisan concern. Data center buildouts and electrification are pushing U.S. electricity demand up, while transmission bottlenecks slow new supply.
Wood Mackenzie projects wholesale power prices will rise 46% from 2026 to 2035, while annual transmission congestion costs already exceed $10 billion. Whether permitting reform will be enacted and how it will affect those cost trajectories remains unresolved.
The players
Wood Mackenzie
A global research and consultancy firm whose energy analysts track power markets, transmission, and grid investment.
The details
Democrats captured the House and Senate in the midterm elections, and Wood Mackenzie expects permitting reform to advance. The Bipartisan American Affordability and Jobs Act (BAAJA) is cited as the primary vehicle to accelerate utility-scale solar, battery storage, and high-voltage transmission, requiring NEPA reviews within two years and limiting post-approval legal challenges to 150 days.
Timeline
August: Executive order restricting bulk-power equipment from 24 nations, including China, was issued.
December: Final guidelines for the executive order are expected.
Roadmap
The Energy Independence and Security Act of 2007 passed during divided government, a precedent that shows bipartisan energy legislation is possible under split control. Permitting reform now follows that pattern as grid expansion and power affordability become shared priorities in Washington.
Wholesale power price increases projected at 46% could flow through to household electricity bills over the coming decade. Permitting reform, if enacted, would shape how quickly new solar, storage, and transmission projects reach service.
The takeaway
Power affordability is becoming a shared bipartisan priority, and grid permitting is the central lever to watch. Readers should track how permitting legislation and the December executive order guidelines affect future electricity costs.
Further reading
Explore more on Utilities for context on grid costs and power market trends.
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Do you expect your household's electricity costs to get worse over the next few years?
